Financial decision making during difficult times

If you are having difficulty paying bills as a result of COVID-19, ask yourself these questions and use the Spending Plan worksheet to figure out your income and expenses before you make any big decisions.

How much income can you count on each month?

Where are areas that you can cut costs?

What are your essential expenses? Write down the name of the companies and their contact information (you can find that on your most recent bill).

Housing

Utilities (electricity, gas, water and garbage)

Food

Transportation expenses (bus fare, gasoline, car payment)

How much money is needed to cover your essential living expenses?

What will affect your family’s health and security the most?

How long is your present financial situation likely to last?

Once you’ve considered these questions, read through the suggestions below or download the fillable form (pdf) to gather information about CARES Act programs that could help you financially.

Typical expenses

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What relief is available for rent payments?

Minnesota Gov. Tim Walz has issued an executive order that prevents people from being evicted. This doesn’t mean your rent has been excused or waived. This order buys people time during the “stay at home" order. Remember, this is a temporary order in response to COVID-19. You are still responsible for unpaid rent when the crisis has passed. If you can pay your rent, do that. If you can’t, talk with your landlord.

Action

What relief is available for a mortgage?

The Federal Housing Finance Agency has announced that all mortgage loans owned by Federal Home Loan Banks (Fannie Mae, Freddie Mac, etc.) will offer temporary relief to those affected by COVID-19. They will be eligible to temporarily delay making their monthly mortgage payments. During this delay there will be no late fees incurred; delinquencies will not be reported to credit bureaus; and foreclosure and other legal proceedings will be suspended. In addition to the loans covered above, many financial institutions also are offering relief. Contact your lender to learn more.

Action

What relief is available for utilities?

Although this is not part of the CARES Act, there are still energy assistance funds available through utility companies. The Minnesota Public Utilities Commission (PUC) and Minnesota Department of Commerce have requested that all electric and gas utilities implement consumer protection safeguards, specifically, expanding and extending cold weather rule protections, suspending customer shut-offs, waiving late fees and arranging payment plans.

Action

To receive an application and find your local service provider, visit the Energy Assistance Program section of the Commerce Department website or call the Commerce Department toll-free at 800-657-3710.

What relief is available for food?

There are a number of resources available to help you stretch your food dollars during this crisis.

What relief is available for transportation?

Auto loans are not addressed in the CARES Act. Many lenders, however, have agreed to suspend loan payments for customers who indicate that they have been affected by COVID-19.

Action

Contact your lender to learn about possible strategies such as reduced or suspended auto loan payments.

What relief is available for unemployment?

If you have lost the ability to work because of circumstances related to COVID-19, there’s a good chance that you’re eligible for some unemployment benefits. Both state and federal eligibility requirements have been expanded because of COVID-19. Now people who have never been eligible before (for example, people in business for themselves) may be eligible. The Pandemic Unemployment Assistance program has been signed into law and guarantees expanded benefits for people whose jobs have been affected by the pandemic.

Action

What relief is available for credit cards?

The CARES Act requires lenders to report to credit bureaus that consumers are current on their loans if consumers have sought relief from their lenders due to the pandemic. Additionally, many lenders are offering relief in various forms (late fees, interest charged).

Action

Make a list of each of your credit cards and how much you owe. Use the worksheet, "How Much Do I Owe?" Check with your individual lender to see if they have assistance programs available.

Insurance

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What relief is available for auto insurance?

This is not addressed in the CARES Act.

Actions

Check with your agent or provider about strategies to reduce payments.

What relief is available for renters insurance?

This is not addressed in the CARES Act.

Actions

Check with your agent or provider about strategies to reduce payments.

What relief is available for health insurance?

If you lose your job because of COVID-19, what happens to your employer-sponsored health insurance is up to your employer. Some employers have decided to continue to offer health coverage to their employees but that is not a requirement of the CARES Act.

Action

Contact your employer to find out if you still have health insurance coverage.

If needed, contact MNSURE to see if you qualify to apply for health insurance during a special enrollment period.